Enhanced Living Benefits
An Enhanced Living Benefits (ELB) rider paired with a life insurance policy is a great way to prepare for your future. Think of an ELB as the delicious extra toppings on a pizza. A pepperoni pizza is pretty good on its own, but imagine how much more delicious it would be if adding your favourite toppings. It would be even better if you got to add those toppings at a discounted rate if the pizza business gave you a coupon.
Combining an ELB with a policy in place will allow you to receive protection for unexpected expenses by gaining access to your life insurance proceeds as a living benefit. Separate from a death benefit rider, a living benefit rider guarantees a payout while you are still alive.
Why Would You Need a Payout of Benefits While You’re Still Alive?
There are qualifying conditions that would require you to be protected while you’re still living. Age, chronic illness, injury or disability might require you to be taken care of. Needing a nurse or caretaker might require funds beyond your retirement savings. Oftentimes even beyond the benefits of Medicare. If you or a spouse member need long-term care, the costs can deplete more than your hard-earned assets. ELB isn’t long-term care, but it helps you benefit more when paired with other add-ons. Especially if you intend to work with the same insurance company. Like the pizza analogy, the coupon works only when you order all the toppings at the same pizza store. You wouldn’t order a pizza from Domino’s, and get the extra toppings from Pizza Hut.
How Does an Enhanced Living Benefit Work?
Investopedia shares a great example of how an enhanced living benefit rider works. They write, “Nancy invests $150,000 in a variable annuity at age 35. She allocates the proceeds among several different subaccounts within the contract and purchases an enhanced living benefit rider that guarantees a hypothetical growth rate of 6% per year.
At age 60, her actual contract value is $400,000. But if she decides to annuitize her contract and commit to a guaranteed stream of income (and this option is often irreversible), then her enhanced rider will pay her a stream of income that is based upon a hypothetical value of approximately $643,000 (equal to $150,000 growing at 6% per year for 25 years).” That’s very substantial.
Why Choose an ELB Add-On?
For a fraction of what a stand-alone, long-term care policy would cost, you can help secure your family’s assets. The ELB rider will allow a prepayment of a portion of the death benefit if you qualify under certain triggers. Those being if you were unable to perform daily activities without assistance.
Concord Financial Alliance is a full-service insurance company that partners with Kansas City Life Insurance to ensure you have the best available options for policies. Navigating insurance can be very tricky, especially with all of the jargon and numbers involved. Contact us at Concord Financial Alliance to speak with one of our agents. Visit to read more of our blogs on insurance. We are a small business that works to make sure you are always taken care of. You will always get to speak with an agent that understands your time is important.